2. Formal Group – Established by the organization and
have a public identity and a goal to achieve
Informal Group – Common interests/ Friendship/
Proximity/ Camaraderie
Introduction
3. Formal Groups
• A More Natural and enduring work group. Formed where people
perform tasks together as part of their job assignments and referred
to as a team. Describe the prescribed lines of communication and
authority
4. Informal Groups
• The focus in the formal organization is a network of personal and
social relations not established or required by the formal
organization but exists spontaneously as people associate with each
other
6. Potential Advantage and
Disadvantages of Informal
Organizations
1. Makes a more effective total system
2. Lightens work load on management
3. Helps to have work done
4. Tends to encourage cooperation
5. Fills in gaps in a manager’s abilities
6. Gives satisfaction and stability to work groups
7. Improves communication
8. Provides a safety valve for employee emotions
9. Encourages managers to plant and act more carefully
7. Potential Advantage and
Disadvantages of Informal
Organizations
1. Develops undesirable rumors
2. Encourages negative attitudes
3. Resists change
4. Leads to interpersonal and intergroup conflicts
5. Rejects and harasses some employees
6. Weakens motivation and satisfaction
7. Operates outside of management’s control
8. Supports conformity
9. Develops role conflicts
8. Certain Guidelines that management
may need to apply as approach to
Informal Groups
1. Accept and understand the informal organization
2. Identify different levels of attitudes and behavior of
individuals within the group
3. Be aware of the possible effects on informal systems when
taking any kind of decision
4. Integrate as far as possible the prevailing interests of
informal groups with those of the formal system
5. Keep formal activities from unnecessarily threatening the
informal organization
12. Guidelines for Effective Group
Meetings
1. Distribute the agenda and background material in advance
2. Clarify the objective
3. Compose the group appropriately
4. Encourage the expressions of minority viewpoints
5. Separate idea generation from evaluation
6. Make assumtopns explicit
7. Legitimize questions explicit
8. Control irrelevant discussions
9. Test support for decisions
10. End on a positrive note and assign responsibilities